Customer Loyalty
This formula calculates the total revenue a business can expect from a customer throughout their entire relationship
What is Customer Lifetime Value (CLV)?
These are the four essential functions that all managers perform, regardless of their level in the organization.
What are planning, organizing, leading, and controlling?
This type of selling creates a "win-win" situation where both the seller and customer benefit.
What is persuasion?
This is the first step of the sales cycle where you identify potential customers who might actually need or want what you're selling.
What is prospecting?
This is the cost ratio between acquiring new customers versus retaining existing ones.
What is 5:1 (or 5 times more expensive)?
This function involves influencing and motivating people to work toward organizational goals - it's called the "people" function
What is leading?
This type of selling creates "win-lose" situations, destroys trust, and often leads to customer regret.
What is manipulation?
During your presentation, you should focus on these rather than just listing features, explaining how the product will improve the customer's life.
What are benefits?
In the coffee shop CLV calculation example, a customer with $8.50 average purchase, 12 monthly visits, 18-month lifespan, and $15 acquisition cost has this CLV.
What is $1,821?
This management function involves setting goals and deciding how best to achieve them - the "what" and "how" of management
What is planning?
This red flag tactic involves advertising one thing but delivering something completely different.
What is bait and switch?
These five common types of objections include concerns about price, need, trust, time, and this fifth one where customers compare you to alternatives.
What is competition?
Loyal customers are this many times more likely to refer others to your business compared to regular customers.
What is 4 times (4x)?
This function monitors performance, compares results to goals, and takes corrective action when needed
What is controlling?
This phrase describes the artificial urgency created by saying "You have to buy now!"
What are high-pressure tactics?
These four closing techniques include the direct close, summary close, trial close, and this fourth method where you act as if the customer has already decided to buy.
What is the assumptive close?
Advocates in the Customer Loyalty Pyramid represent this percentage of customers but generate 5x more revenue.
What is 3%?
These are the three levels of planning, from broadest to most specific.
What are strategic, tactical, and operational?
This is the outcome manipulation achieves for the seller, while the customer loses out.
What is tricking someone for your own gain (or a win-lose scenario)?
This final step of the sales cycle involves staying in touch after the sale and is what separates good salespeople from great ones.
What is follow-up?